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Assume that the real risk-free rate is 2.2% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 5.4% and

Assume that the real risk-free rate is 2.2% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 5.4% and a 2-year Treasury bond yields 6.2%. Calculate the yield using a geometric average.

What inflation rate is expected during Year 2? Do not round intermediate calculations. Round your answer to two decimal places.

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